Case Study: Papillion and Missing Middle Housing

This is the first in a series of “Research Notes” compiled by our summer intern, Ethan Roth. We have him looking at an assortment of things related to housing in Nebraska. We thought others might be interested in some of the things that he is seeing. These findings will add to our base of knowledge as we look ahead to helping to find policy solutions that will address the housing shortages we’re seeing in many parts of the state. We want to make it easier for young folks to come to Nebraska and stay in Nebraska!

In 2020, the Nebraska Legislature passed the Municipal Density and Missing Middle Housing Act (Neb. Rev. Stat. §§ 19-5501 to 19-5506), which required Nebraska municipalities with a population over 20,000 to regularly report on their efforts to address the limited availability of affordable housing. While many cities have developed robust plans and all have met the reporting requirements, Papillion has stood out in its efforts to promote the construction of missing middle and affordable housing, even before the Legislature’s action. On May 27, 2026, the Papillion Planning Commission held public hearings to consider updates to its zoning ordinances in order to incorporate regulations for “Missing Middle” housing.

An outlier among comparable Nebraska cities, Papillion’s R-2 Medium-Density Residential district has historically permitted the construction of duplexes. Their updates would expand allowances for triplexes, quadplexes, and cottage clusters while reducing minimum lot size requirements in select residential zoning districts to allow denser residential development. The commission also considered amending language to encourage the development of upper-story multi-family residential units above certain commercial spaces.

Notably, the commission proposed adding the R-5 “Pocket Neighborhood” zone, a new residential district that would incorporate and encourage the development of a range of “Missing Middle” multi-unit or clustered housing types in a walkable, urban context. Often grouped around a common courtyard or open space, lot area development regulations are reduced for yard setbacks.

Papillion’s recently completed Bungalows on the Lake development is a model for “Missing Middle” housing development across the state. Not only does it represent an effort to provide a variety of affordable housing options, but it also brings neighbors together in a higher-density, walkable environment centered around community space. Nebraska cities, like Papillion, ought to consider reviewing ordinances to incorporate more flexible land-use regulation, opening up opportunities for “Missing Middle” housing in new and existing development.